Los Angeles daily herald., 1887-02-28
INDEBTEDNESS OF CITIES.
Mr. whites Bill Authorizing Y
Cities to Go on Credit.

State Senator White has introduced
the following bill into the Senate, which
is of Importance to Los Angeles. The
Assembly has already passed a similar
bill:
An act authorizing the incurring of
indebtedness by cities Incorporated uuder
the laws of this State.
Section |. Any city Incorporated under
the laws of this State may, as herein
after provided, incur indebtedness to
pay the cost of any permanent municipal
Improvement requiring an expenditure
greater than the amount allowed for
such improvements by the ordinary
annual tax levy.
SEQ. 2. Whenever the legislative or
governing branch of any city govern
ment shall, by a vote of three-fourths
of all its members and approval
by the Executive of said city. deierm ne
that the public interest or necessity de-
mands the acquisition, construction or
completion of any permanent municipal
building work. sewers, property, water
rights, or improvement, the cost of
which is too great to be paid for out of
the ordinary annual income and revenue
of the municipality, they may by ordi-
nance call special election and submit
to the qualified voters of said city the
proposition of incurrng a debt for the
purpose set forth in the notice of cleo
ton, and no question other than the in
curing of indebtedness shall be sub
mltted. The ordinance of the city
calling such special election shall
recite the objects aud purposes for
which the indebtedness is proposed to
be incurred, that the plans and specifica-
tions OF the improvement proposed is
filed in the Office of City Engineer Tor
other Office of the city,, the estimated
cost Of such improvement, the necessity
for such Improvement, and that
bonds of the city for municipal i'm
provement shall issue for the payment
of the cost as in said ordinance set
forth, if the proposition be accepted by
the qualified voters of the city as here
mater provided, and shall fix the day
on which such special election shall be
held, the manner of holding such elec.
tion, and of voting for or against incur
ring the Indebtedness; provided, such
elec ion shall b, held as provided by
law for holding such city elections.
Sec. 3. Said ordinance shall be pub.
lished once each day for ten days, before
the publication of the notice of the
special election, in some newspaper pub.
lished ia such city. On the expiration
of said ten days, the Executive shall
cause to be published not less than eight
days, in one of the daily newspapers of
such city representing each political
party, if such political party be repre-.
sented by newspaper SO pub.
lished, notice of such special
election, the purposes for which the in-
debtedness is to be incurred, the
amount of Indebtedness to be incurred,
the character of the bonds to be issued,
the rate of interest to be paid, and the
amount of tax levy to be made for the
payment thereof 1t shall require
vote of three fourths Of ell voters voting
at such special election to authorize the
issuance of the bonds herein provided.
Sec 4 All bonds of a municipality
for permanent improvements issued
under the provisions Of this act, shall be
OF the character Of bonds known as
serials, and shall be payable in the man.
ner following: One. twentieth part of the
whole amount of Indebtedness shall be
rayable each and every year on day to
be- fixed by the governing branch OF the
city, together with the annual
interest on all sums unpaid at
such date, and the bonds shall be
issued in such denominations as the
government of such city may determine,
but not less than 500, or more than
$1,000, payable on the day fixed in said
bond, with interest not to exceed the
sum of four and half per cent per
annum. Such bonds may be sold by the
said city as they may determine, at not
less than their face value in gold coin Of
the United States, and the proceeds of
snch sale shall be placed in the City
Treasury to the credit of the Municipal
I'm, rovement Flu d, "No. -" or other
designation, and shall be applied eXcus.
lively to the purposes and objects men.
TONED in the ordinance providing for
the issuance of such bond, until said OBJ.
cts are accomplished, and the residue,
if any, shall be transferred to the General
Fund of said city.
Sec. s. The legislative branch of such
city shall at the time of fixing the gen.
eral tax levy of said city. and in the
manner for such tax levy provided,
levy and collect annually each year for
the term of twenty years tax sufficient
to pay the annual interest on
said bonds and one twentieth part of
the aggregate amount of such indebted.
ness so incurred. The taxes herein re.
quired to be levied and collected shall
be, in addition to all other taxes levied,
for city purposes, and shall be collected
at the same time and in like manner as
other city taxes are collected.
Sec. 6. Within thirty dnys after the
sale of such bonds the Executive of
said city shall appoint three Commission.
ers of such improvement, who shall be
confirmed by vots of not less than
three.fourths of the members of the leg
islative branch of said city government,
which Commits sioner shall have charge
of the said improvement and
the disbursement of tie said
funds for such purposes subject to the
conditions of the ordinances of the said
city providing for such Improvement
and such ordinance as may be passed
relating thereto; but no Commissioner,
when appointed shall be removed until
the completion of the said improvement,
unless by order Of the Executive con.
Cured in by vote of three. fourths of
s'id legislative branch for cause. The
Commissioners shall receive per diem
compensation.
All contracts shall be let to the lowest
bid Ter.
The Treasurer shall give additional
bonds when necessary.